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Global Pharma Supply Chains Pivot toward India’s Growing CRDMO Industry

A recent report by Macquarie Equity Research projects that India’s Contract Research, Development, and Manufacturing Organization (CRDMO) industry's market size to double from USD 7 billion to approximately USD 14 billion by 2028, driven by regulatory tailwinds and increasing pharmaceutical outsourcing.

• By Pooja Chaturvedi Sah
• New Delhi
• Feb 21, 2025

News

As global pharmaceutical companies restructure their supply chains to mitigate risks and reduce dependency on a single market, India’s Contract Research, Development, and Manufacturing Organization (CRDMO) industry is emerging as a key player. A recent report by Macquarie Equity Research projects the sector’s market size to double from USD 7 billion to approximately USD 14 billion by 2028, driven by regulatory tailwinds and increasing pharmaceutical outsourcing. 

The sector is expected to grow at a compound annual growth rate (CAGR) of 14 percent, but analysts suggest that policy measures like the US Biosecure Act could accelerate growth even further, potentially propelling India’s CRDMO market to USD 22 billion by 2030. 

Pharmaceutical supply chains have undergone significant restructuring in recent years, largely due to geopolitical shifts, pricing pressures, and the need for resilient, diversified production bases. With Western pharmaceutical firms seeking to reduce reliance on China for raw materials and drug manufacturing, India has become a preferred alternative for small-molecule drug development and production. 

The report underscores that India’s CRDMO sector is “at an inflection point,” benefiting from the ongoing shift in global pharmaceutical supply chains. Companies are actively looking for cost-effective yet highly regulated markets to ensure production continuity without compromising on quality and compliance standards. 

The broader Asia-Pacific pharmaceutical Contract Development and Manufacturing Organization (CDMO) market, valued at over USD 50 billion in 2023, is expanding rapidly. While China continues to dominate, India is making significant inroads as a viable alternative, particularly for US and European pharmaceutical firms seeking diversified supply networks. 

A major factor driving India’s rise in the global pharmaceutical supply chain is its cost advantage. Indian CRDMOs operate at 30-40 percent lower costs compared to Western counterparts while maintaining high-quality standards. This cost-effectiveness, combined with India’s regulatory track record, makes the country an increasingly attractive destination for global pharmaceutical outsourcing. 

India’s CRDMO firms hold regulatory approvals from key agencies such as the US Food and Drug Administration (USFDA) and the European Medicines Agency (EMA), reinforcing their credibility in global markets. The report highlights that companies looking for alternative supply chain hubs see India as a stable and compliant partner for drug manufacturing. 

Additionally, India’s deep expertise in Active Pharmaceutical Ingredients (APIs), Highly Potent APIs (HPAPIs), and specialty chemicals further enhances its role in the pharmaceutical supply chain. With capabilities spanning from early-stage drug discovery to large-scale commercial production, Indian CRDMOs offer comprehensive solutions for global pharmaceutical companies. 

One of the most critical factors influencing global supply chain realignments is the increasing role of government policies in shaping pharmaceutical trade and production strategies. The US Biosecure Act, which encourages companies to diversify their supply chains away from China, is expected to accelerate India’s growth trajectory in the CRDMO sector. 

As Western governments emphasize pharmaceutical security and reduce reliance on any single country for essential drugs and raw materials, India stands to benefit from this strategic shift. The report suggests that if these regulatory trends continue, India’s CRDMO market could experience a higher-than-expected growth rate, potentially surpassing the USD 22 billion mark by 2030. 

With global pharmaceutical supply chains undergoing a transformation, India’s CRDMO industry is well-positioned to capitalize on this shift. As companies seek to de-risk their operations and establish alternative production hubs, India’s combination of cost efficiency, regulatory strength, and advanced pharmaceutical expertise makes it a compelling choice. 

As outsourcing trends continue to rise and geopolitical considerations reshape supply chains, India’s CRDMO sector is expected to play a pivotal role in ensuring global pharmaceutical supply stability in the years to come.